270 Addresses are Responsible for all Cryptocurrency. Money laundering is the process of transforming “dirty” money from criminal activities into “clean” money by concealing or disguising the original source. The most common channels for hiding sources of income are offshore accounts, real estate, and many times cash transactions. It reinforces the stereotype that crime doesn’t pay.
In a report last week, blockchain investigations firm Chainalysis found that cryptocurrency criminals tend to launder funds through a small cluster of online services. These include high-risk (low-reputation) crypto-exchange portals, online gambling platforms, cryptocurrency mixing services, and financial services that support operations headquartered in high-risk jurisdictions.
To mitigate the risk of being found out and/or arrested criminals. Typically send their money back to a more reputable exchange service to trade it for fiat currency.
Because these services serve as gateways into the cryptocurrency market, they provide a convenient way for criminals to launder funds while still holding on to the digital currency.”
While everyone is saying that cryptocurrency has been tainted by crime, Chainalysis reports that just 270 addresses are responsible for 55% of all the cryptocurrency associated with criminal activity. In total, these 270 Addresses are Responsible for all cryptocurrencies and have laundered around $2 billion worth of funds in connection to illegal activities like drug trafficking and terrorism.
Chainalysis researchers analyzed the blockchain addresses to find out who is responsible for sending and receiving money in relation to criminal activity. The researchers examined transactions on the top 20 bitcoin exchanges, and then analyzed how those transactions connected to criminal activity. The results were very concerning.
In the first six months of 2authorities seized over $2 billion in cryptocurrency. The report found that 270 Addresses are Responsible all Cryptocurrency were responsible for all the money laundering activity.
The study, conducted by the research unit of Europol, also reported that it had in fact nearly tripled to $5.3 billion just six months later.
It is not clear why this happened, although it was found that most proceeds originated from online scams and ransomware attacks aimed at disrupting or stealing sensitive data on computers vulnerable to such attacks.
Is Money laundering easier via cryptocurrency?
A recent study concluded that a whopping 55% of all cryptocurrency-related money laundering activity occurred through just 270 of the approximately 15 million blockchain wallets. Those are some big numbers: With roughly 130 different digital currencies in existence. It’s estimated that more than $2 billion has been laundered since 2008, and virtually all of it was done without a trace.
The obvious solution is to increase the number of tracking points available to authorities.
For instance, cryptocurrency can be used to launder money – whether it’s as a way of using legitimate crypto to convert ill-gotten gains into real money or simply converting fiat currency into crypto or vice versa. Cryptocurrency has been a questionable point of discussion for years now. Between the high-profile cryptocurrency frauds, the many hacks that have left investors in tears, and the still-murky regulatory environment, it’s no wonder some are convinced that a cryptocurrency is just a tool for laundering ill-gotten gains
Chainanalysis, which creates software for blockchain analysis and who have published its 2021 Crypto Crime Report, found that more than half of all laundered money goes through illicit cryptocurrency. This is despite the relatively low volume of transactions.
Chainanalysis team found that there are specific illicit cryptocurrency exchanges, where launderers go to change illicit funds into other cryptocurrencies or sell them for fiat currency. This method is in competition with other methods for money laundering and for illegal fund transfers.
One ominous trend that Chainanalysis found in their 2021 Crypto Crime Report was the increased concentration of illicit cryptocurrency funds. The report found that 270 service deposit addresses accounted for 55% of illicit cryptocurrency funds globally, and a smaller group of just 24 had more than $500 million worth of laundered funds.
It’s clear that this problem is only going to get worse as time goes on, especially with the increased use and adoption.
Many stories about cryptocurrency over the past year have been about how it is used in criminal activity. It has developed a reputation for being the commodity of choice for money launderers and criminals.
However, as numbers show, illegal activity makes up a minuscule percentage of transactions. This is not to say that money laundering via cryptocurrency does not exist. A growing number of businesses have reported that they have been affected by it Nor does it mean that companies should ignore the risk that cryptocurrencies potentially bring.
What are preventive measures for money laundering via cryptocurrency?
IdentityCheck is a digital platform for organizations to improve their compliance management with a global database of sanctioned people. As well as politically exposed persons (PEP). What sets IdentityCheck apart from other verification solutions is that it utilizes high-quality data in real-time to spot sanctions and PEPs on an ongoing basis.
The system not only draws from global databases and the users’ own data. But also monitors for sanctions and politically exposed persons (PEP) on an ongoing basis. IdentityCheck uses this information to automatically alert administrators when a previously unknown. Individual is found to have been sanctioned or becomes a PEP.
This online solution also encourages each company or organization behaving in accordance with international laws to keep their fingers crossed after they’ve made their switch to the new online system.
Blockchains have become the backbone of modern crypto asset transactions because they offer a platform for non-illusory asset trading. Here’s how.
Blockchains are the underlying technology that elevates crypto assets from the realm of speculation and into true utility. One key feature of a blockchain is immutability – which means that all data in the chain cannot be change. This network-wide verification prevents information from being alter without being detected.
The immutable ledger is a new computeriz record of crypto wallet transactions, track by crypto wallet addresses. This has the potential to help prevent ne’er-do-wells from getting their hands on illicitly obtain assets. Such as ill-gotten money and cryptocurrency, given that each transaction is tied back to the owner of the crypto wallet.